An Introduction to Cost Terms and Purposes Cost of goods purchased, cost of goods sold, and income statement Free work cells Answer cells The following data are for Arizona Retail Outlet Stores. The account balances (in thousands) are for 2017. Account Balance Depreciation on store fixtures 10,340 General and administrative costs 8,140 Marketing and advertising costs $60,742 Merchandise freight-in 25,300 Merchandise inventory, December 31, 2017 131,560 Merchandise inventory, January 1, 2017 113,850 Purchase discounts 22,770 Purchase returns and allowances 27,830 Purchases 657,800 Revenues 809,600 Shipping of merchandise to customers 5,060 Answer cells must remain in the same location so do not insert/delete columns or rows in the file. Numeric answers must include a formula or reference so do not hard enter the answer. 1a. Compute the cost of goods purchased. Cost of goods purchased 1b. Compute the cost of goods sold. $632,500 Answer cells must remain in the same location so do not insert/delete columns or rows in the file. Numeric answers must include a formula or reference so do not hard enter the answer. Cost of goods sold 2. Prepare the income statement for 2017 Arizona Retail Outlet Stores Income Statement Year Ended December 31, 2017 (in thousands) Gross Margin Operating costs: Total operating costs Operating income (loss)